ELI5 summary
The deadline
An RRSP must be closed by December 31 of the year you turn 71. You have three choices for the balance: transfer it to a RRIF, buy an annuity, or take it as cash (fully taxable in one year, which is almost never sensible). Most people choose the RRIF, and the first minimum withdrawal is required in the year after the RRIF is opened. Someone who converts in 2026 takes the first minimum in 2027.
You may convert earlier than 71 if you want regular income sooner. There is no minimum age.
The minimum withdrawal schedule
The minimum is a percentage of the RRIF’s value on January 1 of each year:
| Age on Jan 1 | Minimum | Age on Jan 1 | Minimum |
|---|---|---|---|
| 65 | 4.00% | 81 | 7.08% |
| 70 | 5.00% | 82 | 7.38% |
| 71 | 5.28% | 83 | 7.71% |
| 72 | 5.40% | 84 | 8.08% |
| 73 | 5.53% | 85 | 8.51% |
| 74 | 5.67% | 86 | 8.99% |
| 75 | 5.82% | 87 | 9.55% |
| 76 | 5.98% | 88 | 10.21% |
| 77 | 6.17% | 89 | 10.99% |
| 78 | 6.36% | 90 | 11.92% |
| 79 | 6.58% | 92 | 14.49% |
| 80 | 6.82% | 95 and over | 20.00% |
Below 71 the factor is 1 ÷ (90 − age): 4% at 65, 5% at 70. There is no maximum; you can withdraw more than the minimum at any time, subject to withholding on the excess.
Worked example
Nadia turns 72 on Jan 1, 2027 with $500,000 in her RRIF. The minimum for the year is 5.40% × $500,000 = $27,000. Nothing is withheld on that amount, but it is added to her income; with CPP and OAS of $27,000 she has about $54,000 of taxable income in Ontario and owes roughly $8,000 of tax for the year. If she withdraws an extra $10,000, 20% is withheld on the extra and the whole $37,000 is taxed at her marginal rate.
Show the math
Minimum = balance on January 1 × factor for your age (or your spouse’s age) on that date. In the year the RRIF is opened the minimum is zero. Withholding applies only to withdrawals above the minimum, at 10%, 20% or 30% of the excess by size (5%, 10%, 15% federally in Quebec). All withdrawals appear on a T4RIF and are taxed as ordinary income; from age 65 up to $2,000 of RRIF income qualifies for the federal pension income credit and up to half can be allocated to a spouse under pension income splitting.
Using a younger spouse’s age
When you open the RRIF you may elect to base the minimum on your spouse’s or common-law partner’s age. A 71-year-old with a 65-year-old spouse can use 4.00% instead of 5.28%, keeping more money sheltered for longer. The election is made once, at setup, and cannot be changed later, so decide before signing the paperwork.
Why the minimum matters for benefits
RRIF withdrawals are income for every income test:
- OAS recovery tax claws back 15% of net income above an indexed threshold ($93,454 of 2025 income). A large RRIF minimum can push a retiree over it.
- GIS is reduced by 50 cents or more per dollar of RRIF income; TFSA withdrawals are ignored.
- Pension income splitting lets you move up to 50% of RRIF income to a lower-income spouse from age 65, often the single biggest lever for couples.
People who expect to be over the OAS threshold in their 70s sometimes draw down the RRSP in their 60s, before OAS and the forced minimums begin, and move the after-tax amount into a TFSA. Whether that helps depends on the rate paid now versus later; the OAS clawback guide works through it.
Practical points
- Withdrawals can be monthly, quarterly or annual; you set the schedule with the institution.
- Investments carry over: a RRIF can hold the same stocks, funds and GICs the RRSP held.
- On death, a RRIF can roll tax-free to a spouse or to a financially dependent child or grandchild; otherwise the full value is taxed on the final return.
- Withdrawals in kind (moving shares out instead of selling) are allowed and are taxed on the market value moved.
Key takeaways
- Convert the RRSP by December 31 of the year you turn 71; first minimum the next year.
- Minimum starts at 5.28% at 71 and rises every year; a younger spouse’s age can lower it.
- Minimums have no withholding but are fully taxable and count for OAS and GIS tests.
- Pension splitting from 65 and drawing down before OAS begins are the main planning levers.